Real Estate Investor Magazine South Africa November 2019 | Page 14

MASTER INVESTOR
innovating heavily in the low to middle income residential
rental market. The container project at the old city Mills was
one example of a visible innovation, but they were also doing a
lot of work on the process-side to make abandoned buildings
safe, clean and desirable as a place to live and raise a family.”
Citiq Prepaid initially emerged as a critical solution, ensuring
the Citiq Properties could recover their electricity from tenants.
The solution worked so well and was so uniquely tailored to
property owners that Citiq started to offer the solution to other
property owners facing the same challenges.
As Franze recollects his early days at Citiq Prepaid, he
not only emphasises the metamorphosis of the company,
but how much he as an individual values this change. The
transformation that has impacted Franze the most is more
than just a changing business model. The renovation of
communities is the highlight of his career.
“The experience at Citiq Property/Jika during their bullish
growth years was a definite highlight. While the prepaid
business was still small and emerging, it showed me what
good a confident, investing company can do in the world.
Citiq was taking properties with essentially no value, and living
conditions that were, frankly, squalid and transforming them
into colourful communities.”
These accomplishments did not come without diligence
and commitment. Franze acknowledges the importance of
resources, but highlights the value of vision and commitment
to that vision. “This took vision, commitment, self-belief, belief
in the country and the municipality as well as significant
resources and energy to do one building at a time. A very
different image of “landlords” as presented in the popular
imagination.”
Changing the business model of an established company
may require diligent work-ethic and industrious approaches,
but there are certainly advantages. In this instance, a prepaid
metering company emerging from a property company
creates new approaches and untapped resources. Franze
credits this as the reason why Citiq Prepaid has thrived in a
tough economic climate.
“We are the only prepaid metering company that emerged
from a property company. Our systems were built in-house and
contain the DNA of what a property company needs. Enough
functionality to do the job but simple enough to immediately
reflect the realities of the owner or managing agent.”
“Another consequence of emerging from a property
company, is that we take transparency very seriously. For
example, we give property owners full access to the properties
under their profile while also giving their tenants the information
they need to monitor purchases and understand tariffs.”
Just as Franze learnt from his past, adapted to change and
met demand with innovation, Citiq Prepaid adapted their
business model to fill a gap within the property industry. Franze
fits into the role of Managing Director with ease and counts it
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NOVEMBER/DECEMBER 2019 SA Real Estate Investor Magazine
as his biggest achievement: “Becoming the Managing Director
of the biggest prepaid sub-metering company in South Africa
is clearly my biggest achievement.”
“One thing I did not expect from my
experience at Citiq Prepaid is how
transformational growth is. Comparing
the company to any previous year is
unrecognisable”
Franze continues to push for modernisation, but not merely
for the sake of change. He has come to understand that growth
is inexplicably tied to transformation. Merely implementing
changes without moving forward is not progress. His biggest
contribution to his current company is his ability to strive for
evolution without deviating from their core focus.
“My most significant contribution, historically and at
present, is ensuring that the company sticks to the correct
strategic course. It is easy to become tempted by new business
opportunities that distract from the core strategy.”
“One thing I did not expect from my experience at Citiq
Prepaid is how transformational growth is. Comparing the
company to any previous year is unrecognisable. Another
thing is the unpredictability of the challenges. The business is
built to deal with customers and suppliers and yet, the bigger
picture is never that simple.”
Franze values the lessons he learnt from his successes, as
well as his failures. Career equity, experience and the right
stakeholders and partners is an often underestimated, but
important part of a successful business. “One critical insight
in my current position is the importance of having the right
partners and stakeholders in the business. Some choices
almost wrecked us. Others allowed us to accelerate our
growth beyond our wildest imagination.”
The focus is not solely on finding the right partners, but
rather on being the “right partners”. Partnerships based on trust
and placing value on key relationships contributes a unique
perspective in a very competitive sector. Franze believes that
valuing partnerships is not only an advantage to the company,
but more importantly, to the consumer.
“One of our key relationships is our meter distribution channel
through electrical wholesalers countrywide. We honour that
commitment by never selling direct and bypassing them. Another
key relationship is with Municipalities where we have committed
to working with them to address any concerns around illegal
meter connections and assisting with prosecutions.”
The relationships with Municipalities and wholesalers
will continue to prove important during the urbanisation of
South Africa. As a region with a strong population growth
rate, urbanisation will continue to rise. With scarce resources
like water and the rising rates of electricity, an intermediary
between landlords and tenants will only grow in demand.